CAT judgment on core issues in mobile termination rate dispute appeals

On 20 May 2008, the Competition Appeal Tribunal (CAT) handed down its judgment on "core issues" in the appeals lodged under section 192 of the Communications Act 2003 by T-Mobile (UK) Limited (T-Mobile), British Telecommunications plc (BT), Hutchison 3G UK Limited (H3G), and Cable & Wireless and eight other communications providers against determinations issued by the Office of Communications (Ofcom) to resolve disputes about wholesale charges for mobile call termination. The CAT has ruled that the challenges are well founded in so far as they relate to the core issues (in particular, the alleged failure by Ofcom to take account of its regulatory obligations, misapplication by Ofcom of its regulatory role and other errors in determining the disputes).

The CAT has, in particular, found that Ofcom focused too much on the end-to-end connectivity obligation imposed on BT and that it failed to give due regard to its other statutory objectives. The judgment explains the CAT's view that dispute resolution is a regulatory function. The CAT has provided guidance on how Ofcom should approach the task of resolving disputes in future. The CAT now intends to proceed to determine the rates in dispute and to consider any non core issues which remain to be decided. It will then remit the decisions to Ofcom with directions.
PLC Competition

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